Room Revenues Up 20% For Nassau Hotels

Monday, 25 January 2010 00:00
News Editor

New Providence hotels enjoyed an almost-20 per cent increase in room revenues year-over-year for December 2009, driven by an increase of more than three-and-a-half percentage points in occupancy rates and a $32.65 rise in average daily room rates (ADR).

Disclosing the December performance for New Providence's 14 major hotels, the Bahamas Hotel Association (BHA) and Ministry of Tourism said the month's average occupancy rate increased from 50.4 per cent in December 2008 to 54 per cent last year.

Together with the $32.65 ADR increase, a 5.1 per cent rise in hotel room nights sold generated a 19.6 per cent year-over-year growth in room revenues.

The BHA/Ministry of Tourism said 10 of the 14 New Providence hotels surveyed saw a room revenue increase for December, with 50 per cent of hotels seeing an increase in room nights sold with higher ADRs.

Only 29 per cent of the 14 properties saw a lower ADR and increase in room nights sold, while just 14 per cent saw a lower ADR and room nights sold. For December 2009, the ADR rose to $269.20 compared to $236.55 last year, while available room nights were on par with 2008 due to the RIU's re-opening.

For the 2009 full year, the average hotel occupancy stood at 60.9 per cent compared to 63.4 per cent in 2008, with the ADR also down from $246.70 to $227.63. Hotel room revenues dropped by 16.8 per cent, compared to 19.3 per cent at end-November, boosted by the December results.

However, only two of New Providence's 14 major hotels saw a revenue increase in 2009, with hotel room nights decreasing by 9.8 per cent. Air arrivals to end November 2009 were down year-over-year by 6.6 per cent, a drop of 61,849 on 2008 figures.

The BHA/Ministry of Tourism said: "The December results support a general improvement trend which started in September, and has continued with most properties experiencing an increase in occupancy.

"Hoteliers were most encouraged to see the level of improvements in the December ADR increasing by 13.8 per cent over the previous December, reversing a year of declines in every month except September, when a small improvement was experienced.

"Hoteliers hope this will be the start of a trend to bring rates to a level which is operationally sustainable, while continuing to make their products and competitive in order to gain market share through airfare and other value-oriented promotions."